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Conveyancing activity in UK saw ups and downs in second quarter of 2016
Conveyancing activity in the UK residential housing market increased in the second quarter of 2016 with changes to stamp duty pushing up transactions by 24% year on year, the latest data shows. Sales jumped from 230,430 to 286,425 as completions were registered following the rush to beat the Stamp Duty Land Tax (SDLT) changes for buy to let properties and second homes in April 2016, according to the latest edition of the Conveyancing Market Tracker from Search Acumen, the search provider. Completions recorded in the second quarter of 2016 were some 30% higher than two years ago and 59% higher than three years previously and compared with the first quarter of 2016 the three months preceding the SDLT reform there was a rise of 4% as conveyancers dealt with the reverberations across the housing market and the rush of transactions were logged as completed by Land Registry. The tracker report, which uses Land Registry data to examine competitive pressures in the conveyancing market, shows the top five firms led the way in terms of growth compared to the rest of the market, with completed activity rising 17% over the quarter and 41% over the year to reach an average of 3,523 transactions per firm over the three month period. However, outside the top five, the most significant quarterly growth was seen among those firms ranked 501 or lower. In the second quarter their average volume of transactions rose by 5% from the previous quarter. Year on year, those firms ranked 501 to 1,000 experienced 23% growth while those outside the top 1,000 recorded 19% growth. A combination of the SDLT aftershock and pre-Brexit activity meant that conveyancers experienced a rollercoaster ride from month to month during the second quarter. April saw the largest number of businesses responsible for completed transactions at Land Registry in any month since September 2014. The total of 4,374 was 4% higher than a year earlier, when 4,201 firms were active, and suggests the stamp duty rush brought more occasional players back to the market. Volumes of completed conveyancing transactions were also at their highest in April since monthly records began five years earlier in April 2011. Over the month, activity jumped 26% to 114,425 in April from 90,476 in March. Despite an inevitable slowdown the following month, both May and June also saw year on year rises of 14% with firms completing 81,583 and 90,477 transactions respectively, as activity picked up again despite the uncertainty ahead of the UK’s referendum on its EU membership. ‘Few sectors have been left untouched by the tumultuous events of the past few months, and the impact of the EU referendum on the political and economic landscape. Our analysis shows the conveyancing industry has been tried and tested in recent months, and the pressure shows no sign of easing as our country begins to work out what… Continue reading
Home prices and rents in the US up for over 45 months in a row
National home values in the United States increased to an average of $187,300 in July, the 48th month in row of appreciating values, the latest index data shows. Home values have risen by 5% over the past year and have been consistently climbing since August 2012, but still remain 4.7% below the peak of April 2007 when the median home value was $196,600. The index report from real estate firm Zillow shows that Portland, Dallas and Denver reported the highest year on year home value appreciation among the 35 largest metros across the country. In Portland, home values rose almost 15% to a median value of $334,900 while in Dallas and Denver prices were up 11.9% and 11.3% respectively. In notoriously expensive San Francisco, however, home values have been slowing down since the beginning of the year. In January, home values were up almost 12% year on year and are now appreciating at about half that pace, up 6.6% over the last 12 months. ‘The consistent rise in home values that we've been seeing for the past four years masks a number of region specific trends that have taken place over the past few months,’ said Zillow chief economist Svenja Gudell. ‘In most areas, the market is being driven mainly by a strong labour market and tight supply, especially among entry level homes that first time buyers are after. But some markets, especially the red-hot Pacific Northwest, are adding more jobs and attracting more residents, putting the pressure on home values and rents,’ she explained. ‘The Bay Area and Southern California are still growing at a faster pace than the nation as a whole, but growth rates have come back to earth a bit after several years of rapid growth. And markets in other regions, like the Northeast, keep steadily chugging along. All housing is local, and as the local economies in individual metros ebb and flow, housing will follow suit,’ she added. She also pointed out that more than at any time since the boom and bust, the US housing market is being driven by local fundamentals, and not by national trends. Zillow’s latest figures also shows that rents across the country have increased by 2% over the past year to $1,408 per month and have now increased for 47 months in a row. Of the 35 largest US metros, Seattle, Portland and San Francisco reported the highest year on year rent appreciation. In Seattle rents rose almost 10% to a median of $2,052 per month, while rents in Portland rose just over 8%. In San Francisco, the median rent price rose to $3,407 per month, the second highest of all metros, right after San Jose in California while rents in San Francisco appreciated 6% over the past year. Continue reading
More people in UK want to buy a home but ownership levels are falling
The appetite amongst people in the UK to own their home has risen steadily over the past four years but ownership levels have also been falling, new research shows. Some 73% of non-home owners now say they would like to own their home compared to 69% last year, 68% in 2014 and 65% in 2013, according to the annual survey from the consumers group the HomeOwners Alliance. But despite more people wanting to own the roof over their heads, home ownership levels have been declining for the past decade after peaking in 2002 at 69.7% and the report says this is because the high demand for homes is pushing house prices to unaffordable levels. It explains that the mismatch between house prices and wages is worsening, average house prices have risen five times more than wages in the last five years and this is exacerbated by an inadequate supply of new homes. It also points out that despite a series of measures announced by the government aimed at supporting first time buyers, such as the Starter Homes Initiative, extension of the Help to Buy loan scheme and introduction of a new Help to Buy ISA there are still difficulties in first time buyers finding affordable homes. One issues is that in dealing with the housing crisis, much of the focus has been on helping first time buyers, but there is growing recognition that solutions need to go further, it suggests, adding that with availability of homes for sale at a record low, last time buyers in under occupied homes have become a focus for freeing up housing stock for younger families. ‘Despite a blizzard of government initiatives aimed at helping homeowners, the housing crisis is deepening across the country, with ever more non-homeowners wanting their own home, and ever greater concern about the lack of housing,’ said Paula Higgins, chief executive of the HomeOwners Alliance. ‘Many government policies have boosted demand for homes, but what this survey shows is that the real problem is the desperate shortage of houses. Until the government tackles the fundamental issue that we just don’t have enough good quality homes, the housing crisis will continue to deepen and a generation will continue to have their dreams of home ownership crushed,’ she added. It explains that so-called last time buyers, could help ease the housing crisis in the UK freeing up under occupied properties. There are an estimated 11.4 million home owners age 55 and over and 10% of them have considered a move in the past two years but did not. Some 23% of home owners aged 55 or over who considered moving say lack of suitable housing was the main reason they did not do so, this equates to more than 500,000 home owners. Stress and upheaval of moving is also more likely to be a barrier for those moving later in life with 30% saying so compared to 21% of home owners… Continue reading
